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Inland Port January/February 2010

Port of Pittsburgh Exclusive Interview with Executive Director James R. McCarville

LA State Senator AG Crowe on New Super-Port Alternative Financing for Inland Waterways Automatic Identification Systems


IP Editorial Board

INLAND PORT MAGAZINE Michael Gerhardt Dredging Contractors of America Assistant Executive Director, DCA www.dredgingcontractors.org

January/February 2010 Volume II, Number I

HJP

Published bimonthly by

Hudson Jones Publications, LLC Houston, Texas • Tulsa, Oklahoma Phone / Fax: 281-602-5400

Michael McQuillan Inland Rivers, Ports & Terminals President, DiMatter & Associates, Inc. www.irpt.net

Jennifer Carpenter American Waterways Operators Sr. Vice President-National Advocacy, AWO www.americanwaterways.com

Keith Garrison National Waterways Conference Executive Director, Arkansas Waterways Commission www.waterways.org www.waterways.dina.org

Editor Daron Jones djones@inlandportmagazine.com Director of Advertising Jo Anne Hudson jhudson@inlandportmagazine.com

Entire contents ©2010, all rights reserved. Reproduction in whole or in part, without written permission of Hudson Jones Publications, LLC, is prohibited. The publisher accepts no responsibility for content of any advertisements solicited and/or printed herein, including any liability arising out of any claims for infringement of any intellectual property rights, patents, trademarks, trade dress and/or copyrights; nor any liability for the text, misrepresentations, false or misleading statements, illustrations, such being the sole responsibility of the advertisers. All advertisers agree to defend, indemnify and hold the publisher harmless from all claims or suits regarding any advertisements. Due to printing and ink variances, the publisher does not guarantee exact color matching. Opinions expressed by writers are not necessarily those of the publisher or staff. Readers’ views are solicited (djones@inlandportmagazine.com). Publisher reserves the right to publish, in whole or in part, any letters or correspondence received. Publisher assumes no responsibility for unsolicited material.

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Inland Port

January/February 2010 • Volume II, Issue I

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From Panama to Canada, As the Crowe Flies

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Alternative Financing for Inland Waterways Infrastructure

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In this exclusive interview, Louisiana state Senator AG Crowe outlines the Louisiana International Deepwater Gulf Transfer Terminal (LIGTT)

Jorge Romero, Of Counsel, K&L Gates LLP, takes a closer look at bonds and other alternative financing mechanisms

Industry Groups Rally to IMTS White Paper Solution

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By James R. McCarville, Executive Director, Port of Pittsburgh

Castle Group Honored for Pier Repair on Penn’s Landing IP PHOTO GALLERY

Material Handling Systems

Spotlight on equipment from Sennebogen and Lifting Gear Hire

22 Waterways Council News & Notes 23 LGH Debuts 700-ton Modular Spreader Beam 24 Inland Port at the Workboat Show 26 Automatic Identification Systems

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Featuring a star-studded breakfast gathering with IRPT

THE MARKETPLACE

Need to know who passed your port in the dead of night?

28 Supreme Court Rejects Bid to Close Illinois Locks to

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Guest Column by By Jennifer A. Carpenter, Sr. Vice President-National Advocacy, American Waterways Operators

30 Industry Notebook 32 Interview with James R. McCarville THE LAST WORD

Executive Director, Port of Pittsburgh Commission

On The Cover A gorgeous setting at the Port of Pittsburgh. Photo by Mary Ann Bucci.

Inland Port January/February 2010

Port of Pittsburgh Exclusive interview with Executive Director James r. McCarville

AG Crowe on New Orleans’ Super-Port Alternative Financing for Inland Waterways Automatic Identification Systems


From Panama to Canada, As the Crowe Flies


Louisiana state Senator AG Crowe is a step closer to building a deepwater super-port located at the mouth of the Mississippi that he says will create a waterborne supply chain from the Panama Canal, up the US inland waterway, and all the way to central Canada. In this exclusive interview, Crowe details the latest developments on the Louisiana International Deepwater Gulf Transfer Terminal (LIGTT).

You are the Louisiana State Senator for District 1 – what does that cover? I serve Louisiana Senate District 1, which is known as the “Hurricane Katrina district,” since the eye went directly through it. It includes the first 80 miles of the Mississippi River from the mouth up, all of St. Bernard Parish, all of Plaquemines Parish except the uppermost end Belle Chasse, a small part of New Orleans, and the eastern portion of St. Tammany Parish. Give us a brief overview of your professional career, as well as your career in public service. My wife, Linda, is a Kindergarten teacher. We have two beautiful children, Aaron and January/February 2010

Aimee, and five grandchildren: Hannah Elizabeth, BeauJack, Hutson, Malachi and Evangeline Grace. I am from a big family, one of seven children reared in both St. Tammany Parish and New Orleans’ Ninth Ward. I earned a BA in Business Administration from Southeastern Louisiana University. As for business, I am the founder and president of The File Depot, which we opened in 2002 with locations throughout the United States. You can see my full bio at www.agcrowe.com. You are pushing to get a new port for containerized cargo constructed in Plaquemines Parish. Tell us about the latest in www.inlandportmagazine.com

the effort to launch the Louisiana International Deepwater Gulf Transfer Terminal (LIGTT). The LIGTT will be built with private funding and located outside the Mississippi River, off the eastern side of the Southwest Pass in permanently deep water, which never needs dredging. Louisiana owns thousands of acres and ACT 699 of the 2008 legislature unanimously voted in favor of my bill to establish the LIGTT Authority to oversee the development of the new single modal transfer terminal. Ships too large to enter the Mississippi River will be able to dock and unload their containers for other smaller vessels to pick up later. 5


Crowe says Panama Canal officials see LIGTT as a value-add to their expansion and crucial to the development of a new South and North American supply chain running through the central US to Canada that will ultimately address their primary concern: empty containers.

We must remember that 95% of the population of the US can be reached by water. We must do all we can to reduce our highway costs and increase traffic on our waterways. Now is the time and we already have the infrastructure in place: the Mississippi River and its tributaries. Our long-term goal is to create and develop a water route supply chain from the east and west coasts of South America via the Mississippi River and its tributaries through the US to central Canada. A balance of trade is most likely to develop in the long run using this supply chain, rather than the east or west coasts of the US. How did the original idea for this new port come about? The idea started as an answer to a litany 6

of very important questions: what can I do as the senator to help in recovery from the worst natural disaster to hit the United States, bring people back, encourage private investment, help rebuild a completely destroyed portion of our state, bring old businesses and jobs back, bring new businesses in, reduce insurance costs, and so on. All of these challenges led to one dynamic idea that would address them all. Increase the opportunities on the greatest www.inlandportmagazine.com

asset God has given to the state of Louisiana, the Mississippi River, by developing an all new venue called the Louisiana International Gulf Transfer Terminal to address the newer, larger container cargo ships that are so big that they can not get into most ports in the United States. Credit for the original concept deservedly goes to one of my constituents, Lloyd Balliviero, and later John Vickerman, one of the top port consultants in the world. Our location in the central Gulf of Mexico (GOM), with 14,500 miles of waterways through 33 states and three Canadian provinces, reaching over 50 million people, puts us in the perfect position to develop a new supply chain through the central US and a third major port of entry into the US. This will compliment the major expansion and investment by the Panama Canal authorities. Can you explain how this ties in with the January/February 2010


widening of the Panama Canal? We recently met with canal and government officials in Panama. After presenting them with our plans for LIGTT, they expressed to us that they see this project as a value-add to their expansion and crucial to the long-term development of a new South and North American supply chain running through the central US to Canada that will ultimately address their primary concern: empty containers. In other words, the strong history of the balance of import and exports through the New Orleans area deepwater ports would be enhanced and extended throughout the central US via 14,500 miles of waterways and ports. This will result in containers coming back full instead of empty, and eventually through the Panama Canal full and not empty. You have to remember that they get paid on tonnage, not units, so they are very interested in helping us advance our project. In fact, there are three major strategic alliance agreements being presented and adopted between Panama, the LIGTT authority, and the State of Louisiana. What features will make this port unique? This will be the deepest port in the United States. It will be able to handle any size ship, today or in the future. The port will be expandable to thousands of acres as needed. The situation will be extremely profitable for the Licensee chosen by the LIGTT Authority. In addition to being privately-funded, LIGTT will be central to other ports in the GOM, and just above the Panama Canal. It will be fully-automated, green-built, and feature extensive living quarters. Because LIGTT will be raised 40 feet above any potential storm surges, it can provide storm cover for any vessel in the Gulf. It can also serve as a potential Homeland Security as well as US Coast Guard facility. Located at the head of 14,500 miles of central US waterways reaching 33 states and Canada, LIGTT will be in the best position to develop two-way import-export trade, with six rail heads in Port of New Orleans.

Artist’s rendering of the Louisiana International Deepwater Gulf Transfer Terminal (LIGTT). chain in ports. This brought them all to the table first to hear directly about what LIGTT was all about and to bring out any concerns and build a consensus, as well as seek guidance and input. Initial concerns included funding, which was a concern because Louisiana has not been able to adequately fund our ports

over the years. That concern was addressed since LIGTT will be privately-funded. The area ports were concerned that we were just going to shift jobs out of New Orleans south and the millions of dollars of investments in infrastructure would be wasted. The answer there is that we are going

Any project with a scope this big has bumps in the road, both expected and unexpected. Which hurdles have been the biggest and hardest to overcome so far? Prior to passing ACT699 in to law, I authored a resolution that set up a committee made up of most everyone in the food January/February 2010

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Crowe expects LIGTT to be the first port of call for about 20% of the larger vessels coming through the Panama Canal, once it is expanded.

after the big ships that could not get into the Mississippi river, and therefore it will be all incremental business that we do not currently have. Regular size ships would still go up river to the container ports of New Orleans. In fact, John Vickermann, our technical advisor and port consultant, indicated that tonnage will increase dramatically at the up-river ports once LIGTT is in place. LIGTT will actually cause more traffic to be steered through Louisiana and up into the central United States. What are opponents of the plan saying, 8

and how can you help them understand the benefits and significance of the project? Once we addressed the above issues, it cleared the way for passage of ACT 699, with 100% of the vote of the legislators and strong support by Governor Bobby Jindal. No opposition. And as we roll out the information to the industry and other central US ports, we expect the momentum to increase since it will benefit them all. However, another challenge will be the Jones Act. We are developing a plan to seek a five-year waiver so that right-size ships can be built in order to navigate the waterwww.inlandportmagazine.com

ways in the central US. We have experts on our LIGTT authority board very knowledgeable in this area, and we will make our presentation within the next 90 days. The major concern about carbon footprints, the major expenses of maintaining our nations highways, and the understructured rail system in the US all become salient points for Congress to support the development of this supply chain on the waterways. One gallon of diesel fuel will move a truck 40 miles and a train 200 miles, but that same gallon of diesel will move a ship 500 miles. January/February 2010


What will be estimated economic benefit be to the area, the state, and the country? The economic impact will reach the entire central US. The inland ports and terminals will increase in volume and tonnage, thus creating more jobs. Louisiana will benefit from additional shipbuilding of the types of vessels that can navigate through the interior waterways. Louisiana land will be purchased for major multi-million square-foot distribution, as well as assembly centers by companies like Walmart, Sears, Target, Home Depot, Lowes, FedEx, and many others. This will help address my initial reasons for starting this entire idea in my Senate district: jobs, private investment, reestablishment of businesses, increasing property values, and reduced insurance costs. How will the Louisiana International Deepwater Gulf Transfer Terminal avoid the scheduling problems plaguing so many other large international ports? Scheduling problems will be minimal compared to other ports. It is on the Gulf itself, and will not require traversing through rivers and cities, nor dealing with fog delays. Katrina and Rita are still in the back of most people’s minds. You’ve stated previously that this port will be safer in heavy storms than competing ports in Freeport and Jamaica. What factors into this? Again, the facility will be built up 40 feet above potential storm surges, and will also serve as a safe harbor for any ship in the area during storms. It will be safer and have less chance of shutdown than where most of the ships are going now in Freeport and Jamaica, where storms are much more frequent. It will be

January/February 2010

One gallon of diesel fuel will move a truck 40 miles and a train 200 miles, but that same gallon of diesel will move a ship 500 miles. fully automated and green-built, with the latest fast-moving technology. Initially, we expect to become the first port of call for about 25% of what is now going through Freeport and Jamaica. We also expect to be the first port of call for about 20% of the larger vessels coming through the Panama Canal, once it is expanded. We’ll be the second port of call when there are labor strikes on the west coast, and for the east coast ports during storms and hurricanes. On a more general note, how do all the inland ports in Louisiana benefit the state in terms of revenue, jobs, etc.? Inland ports will benefit from the LIGTT in all the ways I previously mentioned. In addition, major upper river ports, such as Memphis, will serve as upper river hubs that will draw up tonnage and cascade throughout their inland ports. We must remember that 95% of the population of the US can be reached by water. We must do all we can to reduce our highway costs and increase traffic on our waterways. Now is the time and we already have the infrastructure in place: the Mississippi River and its tributaries, reaching over 50 million people. The general public sees right away the benefits of getting these containers off the backs of trucks, and thus off the roads.

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However, one faction naturally not so pleased with shipping via America’s inland waterways are the trucking companies. What do you say to them? The trucking industry, as well as the rail industry, realize we have to do something to achieve the goals of all of us. And that is to figure out a way to maintain – and sustain – the quickest, safest, and least-expensive way to get goods from point A to point B. Ultimately, if we do this, more goods will be in motion and more business will be enjoyed by all modes of transportation, including trucking. We must not look at each other as competition, but rather as partners joined together to serve the enduser of whatever we are carrying. What good is it to have too many trucks out there that are simply stuck in traffic being beat up by bad roads? I submit that it is more profitable for everyone when we have a proper balance of modalities. What is the next step? The next step is the LIGTT authority meeting to adopt a Request for Proposal format so that we may choose an exclusive Licensee. Louisiana (via ACT699) is offering a major, multi-billion dollar opportunity to the private sector that will eventually control the supply chain from South to North America, through the central United States, all the way to central Canada through 14,500 miles of waterways. IP

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Alternative Financing For Inland Waterways Infrastructure

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The use of bonds to finance major construction and rehabilitation of locks and dams is frequently mentioned lately as a solution to the Inland Waterways Trust Fund insolvency. The idea seems to have a lot of appeal. After all, you wouldn’t buy a house if you had to pay for it all at once from your current income. Why should we expect that to work for infrastructure expenditures several orders of magnitude above that of a house? Jorge Romero, Of Counsel, K&L Gates LLP, takes a closer look at how bonds and other alternative financing mechanisms might work in this context, and what some of their limitations might be. January/February 2010


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n order to have an idea of what bonds might and might not do, we need to know the available resources and the need. We know the amount of current resources fairly well. At 20 cents a gallon, the fuel tax will contribute an estimated $85 million to the Trust Fund this year. Together with an equal amount that Congress needs to appropriate as the other half of the law’s required 50-50 cost share, available resources total $170 million this year. The current recession may well deliver numbers below that estimate, however. The need is harder to fathom. The Inland Marine Transportation System Investment Strategy Team (IMTS), composed of representatives from the Inland Waterways Users Board and the Army Corps of Engineers, continues the so-called white paper process, using its knowledge and skills to estimate this number, among other things. I’ll have more to say about the

The lower end of the range is the amount of money needed today to fund: 1. the unfunded portion of projects that are under construction now, plus 2. projects that have been authorized but not funded. According to public records, this number is $7 billion. Based on this I’ll pick $12 billion as our straw man number for the need because it is right in the middle of that range. A BONDING EXPERIENCE Before looking at the numbers, let’s take a high-level look at how bonding authority could work in concept. The most likely structure for issuing bonds I think would be an infrastructure bank that would issue the bonds, like the national infrastructure bank that has been proposed. The bonds would represent that bank’s obligations to pay back a stated sum over a number of years at a certain interest

due. This stream of money is the collateral pledged under the authorizing law to repay the bonds. Bonds are another form of borrowed money, so the same principles apply as to a bank loan. If you ask a banker what amount of money you could borrow with the $170 million a year available now to make loan payments, he or she will need two more figures to answer the question: an interest rate and a maturity date. For a few examples, I’ll use a couple of different interest rates—interest rates make a big difference, as we’ll see—taken from obligations in the loan portfolio of the Federal Financing Bank, which is part of the Treasury Department. I’ll use 25 years as a typical term for long-term bonds in example 1: Yearly Payment (25 yrs): $170 M Amount That Can Be Borrowed at: 5.5% - $3 Billion; 3.5% - $4.8 Billion This falls woefully short of the need, so let’s try something else. What if we use the average of the funds expended between 2001 and 2008, when a large surplus in the Trust Fund was spent down and appropriations were moving at a pretty good clip? Yearly Payment (25 yrs): $262 M Amount That Can Be Borrowed at: 5.5% - $4.7 Billion; 3.5% - $7.4 Billion Better, but can we get closer? Let’s say for the sake of another example that we double the available funds in our first calculation from $170 million a year to $340 million. Yearly Payment (25 yrs): $340 M Amount That Can Be Borrowed at: 5.5% - $6.2 Billion; 3.5% - $9.7 Billion That’s much better, especially if we look at the lower of the two interest rates.

draft report it delivered at the Users Board meeting in December 2009 in a bit. In the meantime, it is possible to come up with a straw man number that allows us to look forward. ESTIMATING THE NEED According to the minutes of the August 2009 Users Board meeting, the IMTS estimates that the unconstrained investment need for the inland waterways infrastructure is $17 billion over the next 20 years. This is the high end of the range. January/February 2010

rate. The lenders, or purchasers of the bonds, would be institutional investors or individuals. To make this attractive and keep the interest rate low, the bonds would be guaranteed by the full faith and credit of the United States. The bank would take the proceeds from the sale of the bonds and turn it over to the US Army Corps of Engineers for projects. The Trust Fund withdrawals that now go directly to the Corps for projects would instead go to the bank, which would funnel it to the bond holders when payments are www.inlandportmagazine.com

OBSERVATIONS This exercise lets us make a couple of observations. First, unless IMTS comes out with an amount of the future need substantially below $12 billion, bonding authority will help, but probably will not get us all the way there. There is one important caveat to this. I have assumed in these examples that the entire amount than can be borrowed would in fact be borrowed on day one. In real life you would borrow the money in tranches so that it is available just when you need it, not years before. Since the interest compo11


nent is a large portion of the amount that is paid over time in a loan, this will extend how far available dollars can go. But until we have some specifics on the amount and timing of the need, we will not be able to refine these numbers further. Second, how much you can borrow is

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highly sensitive to interest rates. Anybody who has tried to borrow money knows that, but the example of the above numbers can be a powerful reminder. Two other observations are not evident from the examples but are inherent in any financing. One, you can’t hock the same

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thing twice. If our hypothetical bank borrows against the future stream of revenue expected on day one and later it turns out that the need is greater than that stream of revenue can support, somebody is going to need to find more money. A financing mechanism is not the same as a new revenue stream. Two, when you run the numbers with maturity dates of 12, 30, or 50 years, the amount of money that can be borrowed does not significantly change. Mainly you would be paying less or a lot more interest over those time periods. One policy question hangs over this subject. The power of the purse is Congress’s most important responsibility and its greatest and dearest power. Bonds issued under or guaranteed by the full faith and credit of the United States of America need to have credibility in the marketplace. For this to happen there needs to be some assurance that the issuer or guarantor will be able to get cash on demand from the Treasury when Congress has not appropriated enough money in a given year to make the payments on outstanding bonds. Practically, this means that Congress will have given up its power to control in the annual appropriations process which

January/February 2010


projects get funded. Will Congress do that?

ing the private party to do? Just design and build, I think. And do you need a complicated new mechanism to do what is essentially the same as the Corps does now? Or are you going to put the entire financial risk of non-completion on the private party through a fixed-price contract? Would there be any takers for that? These questions may well be answerable, but not without some hard work.

PUBLIC PRIVATE PARTNERSHIPS (PPP) These observations about bonds also shed useful light on another oftenmentioned financing mechanism, publicprivate partnerships, or PPPs. There are many possible variations in PPPs, but let’s take one likely example: a private party puts up its own and borrowed THE RISKS OF PRIVATIZATION capital to buy the right and the obligation Though it appeals to budget-conscious to design, build, and operate a facility and policymakers, privatization—which is then to collect the revenue from operatwhat PPPs are—is not without risk. This ing it over a number of years. Today no lock or dam on the fuel-taxed Like the USCG Auxiliary, the inland waterway system is inland waterways collects always on the lookout for funding solutions. revenue from its operations. That would have to change to something like a toll or the lockage fee proposed by two administrations and rejected by industry. That looks like a dead end. Alternatively, a defined portion of the available annual revenue stream would be earmarked for a specific set of locks in order to provide the stream of revenue to recoup the investment and a return on that investment. Whether that could be done for the required number of facilities at a level that would provide potential operators with an adequate return on investment is a question that depends on the numbers and is country has been there before and we have beyond the scope of this article. However, bailed out bankrupt agencies in the past. equity money is at greater risk that loaned No, I don’t mean in the last two years. In money and hence will demand a higher the 1800s, when private ownership went return. Since we were already stretching bankrupt, the government took over roads, with bonds, it seems likely to me that to bridges, and canals. make PPPs work Congress would have to subsidize a portion of the payments to the THE IMTS DRAFT REPORT private party. The IMTS team made public an interim If you make a private party responsible report on the white paper recommendafor operating a set of locks, it would make tions in December 2009. While the total sense to make that person responsible for need number is not determined yet, it maintaining it as well. But operation and targets funding at an annual level of $380 maintenance are now funded 100% by the million a year. It also includes proposals federal government, and while policylimiting the 50-50 cost share to projects makers may want to change that, why over $100 million, excluding dams from would industry want to? Would doing so the Trust Fund contribution, reforming guarantee better maintenance, and if so, the Corps project delivery process, and, at what cost? conditioned on everything else, a 30% to And if you take away operation and 45% increase in the fuel tax. maintenance, what are you really askJanuary/February 2010

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Any change to the cost share formula would be a hard sell in Congress in the best of times, and these are not the best of times. It is unlikely that industry will agree to or be able to withstand an increase in fuel tax of the magnitude needed to fund one half of future needs. In the end, chances are new construction and major rehabilitation of the locks and dams are going to need more money. The question will be, who pays? The industry and Congress need to look at and propose some new revenue streams to fund locks and dams. Environmental credits under a future climate bill should

be on the table when Congress takes up climate legislation again. It would simply be good public policy to recognize and foster the environmental benefits of inland navigation. IP Jorge Romero is a transactional corporate lawyer with over 25 years of experience focused on maritime financing and related contracts for oceangoing and inland waterways vessels. He also concentrates on structuring vesselowning entities to comply with maritime laws. In addition, Romero advises non-profits and associations on corporate, contractual, and governance matters. 13


Industry Groups Rally to IMTS White Paper Solution By James R. McCarville Executive DIrector, Port of Pittsburgh Commission

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avigation industry groups have rallied quickly behind the White Paper recommendations of the Inland Maritime Transportation System - Capital Investment Strategy (IMTS-CIS). The plan was unanimously approved by both government and industry representatives on the Inland Waterway User Board at their December 15, 2009 meeting. It has since also been endorsed by Waterways Council, Inc. (WCI), and similar votes are being scheduled for the American Waterway Operators, National Waterways Conference and Inland Rivers, Ports and Terminals. WCI even took the unusual step of amending their bylaws to allow for its passage. While maintaining the 50-50 cost sharing basis, the plan calls for significant changes in the US Army Corps of Engineers’ project delivery system. It removes dam improvements from the User Fund, reflecting the multiple beneficiaries of those projects; it removes lock rehabilitation projects that are under $100 million; and sets a project cap for overruns, beyond which the users would not be responsible for the costs. It is expected that the federal costs would rise to about $270 million a year and the user cost would rise to about

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$110 million to a $380 million annual program for priority projects. For the user share, the marine diesel tax on the commercial towing industry would increase from 20 cents a gallon to 26 cents or 29 cents a gallon, with an additional increase possible in the out years. The new plan would save between $585,000 and $2,110,000 over twenty years. It would also salvage more than $2.8 billion in benefits, that would otherwise be lost, should the plan not be put in place. Even with early action on the plan, its revenues may require several years to accrue. Many observers hope, now that industry and the Corps are on the same page with a long-term solution, that Congress will see fit to quickly appropriate funding to avoid project shutdowns and to avoid further delays in project benefits. Not only will the plan save money for the federal government, it will improve safety and reliability on the rivers and increase the environmental and energy benefits to the nation. Details of the plan can be found at www.port.pittsburgh. pa.us/docs/hoey_-_imts_capital_inv_strategy.ppt. IP

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January/February 2010


How Saving Your Oil Can Save You a Bunch of Money L

ubricating oil is the life-blood of any engine. The cleanliness of that oil directly impacts the efficiency and life-span of the engine itself. Recognizing this, Waukesha, Wisconsin-based Fluid Power Energy came up with a lube oil cleaning centrifuge called Spin-Clean. This cost-effective solution extends the life of engine oil, thereby reducing hazardous waste. Spin-Clean can help anyone who utilizes vehicles that use oil – virtually every vehicle on land and sea – be environmentally conscience and save operational and maintenance costs at the same time. “We are trying to reach both the marine fleet and land-based fleet equipment owners and operators,” says Eric Brewer, Sales Engineer for Fluid Power Energy. “They are the ones responsible for the cost and changing of the oil in their various types of engines. So they will be the ones that most benefit from using the Spin-Clean. They will be running cleaner systems while creating a very nice financial savings in the process.” Spin-Clean cycles the engine oil four times per hour, ensuring proper soot particle extraction. With proper maintenance, SpinClean will increase engine life and oil change intervals up to, but not limited to, 40%. Another benefit is its use as a diagnostic tool. The waste material extracted from the oil can be analyzed for several engine-related problems, such as coolant leaks. Spin-Clean is a true centrifuge that, when sized properly, will remove the dense wear abrasives from the oil down to less than one micron. This will reduce engine wear a minimum of 40%. The properly sized centrifuge recommended for your engine will not use more than 10% of the engine oil pump output. (10% is the acceptable measure by engine manufactures for by-pass, or side stream, oil cleaning.) The 10% taken to supply the centrifuge does not negatively impact the oil demanded by the engine. IP

BARGES: The Greener Way to Go Inland barges produce less carbon dioxide while moving America’s important cargoes.

Inland barge transportation produces far fewer emissions of carbon dioxide for each ton of cargo moved. Transport by rail emits 39% more CO2, and by truck emits 371% more CO2 compared to barges, according to a recent study by the Texas Transportation Institute.

Waterways Council, Inc. 801 N. Quincy St., Suite 200 | Arlington, Virginia 22203 703-373-2261 | www.waterwayscouncil.org January/February 2010

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Before...

...and after the Castle crew’s award-winning work on Quay Pier.

Castle Group Honored for Pier Repair on Penn’s Landing T

he Castle Group (Hainesport, NJ) recently earned the COPRI 2009 Project Excellence Award for its repair and restoration of Philadelphia’s Quay Pier, located on the Delaware River, at Penn’s Landing. The Quay Pier is approximately 1,300 linear feet, and suffered severe damage when a tanker crashed into the pier on March 16, 2006. The pier had been previously used as a marina dock for US Navy ships and other large vessels. After careful analysis, the pier was discovered to be structurally devastated. The Castle Group deemed the pier unsafe and unusable, and the City of Philadelphia and the Delaware River Waterfront Corporation concurred. The pier repair had very specific challenges regarding stabilization and maintaining the integrity of the superstructure. Dangerous conditions proved it unsafe for underwater or underdeck work. In addition, the pier was constructed 16

back in 1968, and no design calculations or as-built drawings were available. Castle had to analyze the capacity of the existing bearing piles, concrete cap beams, based only on drawings that were accessible. “Based upon our inspection, it was found that the east end of the pier was only partially supported by one pile. Therefore, no work could be performed, either under the pier (underwater) or topside until the pier was stabilized. This required innovative engineering in order to protect personnel and also to save the pier from total collapse,” says William J. Castle, President of The Castle Group. The Castle crew developed a repair procedure that stabilized the pier for repairs and eventually saved the concrete superstructure from being removed and replaced. Castle’s method would reduce the estimated repair cost from around $2 million dollars to just $875,000. Through the Castle Group’s overall www.inlandportmagazine.com

design and method of stabilizing the pier from collapsing, they were able to develop and execute temporary and permanent repairs. Three phases had been strategically coordinated in order to proceed from one phase to the next. THE COPRI AWARD The Coasts, Oceans, Ports and Rivers Institute’s (COPRI) Project Excellence Award Judging committee found that the Castle Group’s approach and execution of the project stood out among myriad competitors. “The Judging Committee was faced with a difficult decision, due to the extremely high-quality of submissions. The technical expertise demonstrated in each of the competing projects was superb,” says James E. Spady, PE, Chair COPRI Awards Committee. The committee ultimately selected the Castle Group as winner of the January/February 2010


small project category. The Castle Group, known for its for marine engineering expertise, as well as its design and repair solutions, will be present at the Project Excellence awards ceremony at the PORTS2010 Conference in Jacksonville, Florida, April 25-28, 2010, to receive recognition of this very prestigious accomplishment. “For a company of only 10 people to be one of two companies in the nation to receive the 2009 COPRI Excellence Award is a major accomplishment for The Castle Group. We are honored to have the hard work and innovation behind the success of this project recognized by such a prestigious institute and it motivates us to continue our standard for excellence,” says Castle’s Melissa Stein. IP

January/February 2010

Damage at Penn’s Landing after the tanker collision.

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IP PHOTO GALLERY • MATERIAL HANDLING EQUIPMENT

Sennebogen (Above) Well-known for their efficiency and durability in the scrap-handling industry, Sennebogen “green machines” are becoming a familiar site at port facilities up and down the Mississippi watershed.

(Right) A pair of Sennebogen “green machines” on the job at Pittsburgh’s Neville Island. They often work side-byside, but are equally at home offloading aggregate for Lindy Paving, or coal for Shenango Steel.

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www.inlandportmagazine.com

January/February 2010


(Above) Dickinson, Texas: The Sennebogen 835 M at Breathwit Marine is very efficient as it transfers sand and gravel from barges to hoppers that feed Cemex’s asphalt and cement plant using a 2-cubic-yard clamshell bucket.

(Right) New Castle, Pennsylvania: The Sennebogen 870 M loads a truck with coal from the barge it is unloading at Lindy Pavings’ Neville Island Terminal Dock. The 870 M can unload three barges in approximately a 7.5 hour day, everyday.

(Below) Charleston, South Carolina: Sennebogen’s 880 is an electrically powered material handler. On a tether, this tracked machine is not only very cost-effecient to operate, but provides Nucor with the flexibility they require in all of their operations.

January/February 2010

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IP PHOTO GALLERY • MATERIAL HANDLING EQUIPMENT

Lifting Gear Hire

(Above) A 600-Ton x 26’ Modular Spreader Bar from Lifting Gear Hire, of Bridgeview, Illinois, performing a dock crane load test in Sabine Pass, Texas.

(Right) A 187-Ton x 40’ Modular Spreader Bar from Lifting Gear Hire lifting a yacht out of the water to dry dock in Surrey, BC. 20

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January/February 2010


(Above) A Lifting Gear Hire 500-Ton x 42’ Modular Spreader Bar is shown lifting Canal Locks in the Allegheny River.

(Right) A 350-Ton x 56’ Modular Spreader Bar system from Lifting Gear Hire lifts a container crane that is used to load and unload ships at a Victoria Island, BC port. January/February 2010

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Waterways Council News & Notes Waterways Council Backs Recommendations For Navigation Capital Development Plan

On January 12, the Board of Directors of Waterways Council, Inc. (WCI) voted unanimously to endorse the recommendations of the Industry/US Army Corps of Engineers Inland Marine Transportation System Capital Investment Strategy Team for a 20-year Capital Development Plan. The plan would improve the Corps of Engineers’ project management and processes to deliver projects on time and on budget,

prioritize navigation modernization projects across the entire inland waterway system, and provide a workable and affordable funding mechanism to meet the system’s future capital investment needs. The industry/Corps team believes that these recommendations would set a future course over the near term for efficient investment in our nation’s critically important inland waterways infrastructure. In mid-December 2009, after nearly a year of working together to develop the

consensus Capital Development Plan, the Inland Marine Transportation System Capital Investment Strategy Team, comprised of key Corps of Engineers personnel and members of the inland waterway industry, presented their joint recommendations to the Inland Waterways Users Board, which unanimously endorsed the proposal The Inland Waterways Users Board is a congressionally established federal advisory committee that provides advice to Congress and the Assistant Secretary of the Army-Civil Works. Among the key recommendations is the preservation of the existing 50/50 (50% industry/50% federal) cost-sharing formula for new lock construction and large major rehabilitation projects, while adjusting the current model to provide that dam construction and smaller rehabilitation projects would be federally funded. The Team also recommended a cost-share cap on all new lock construction projects that would protect the Inland Waterways Trust Fund and industry taxpayers from funding significant cost overruns and provide an important incentive for inland waterway modernization projects to be built on time and within budget. WCI President Cornel Martin said, “Waterways Council’s Board recognizes that these recommendations, if adopted, will benefit the nation overall because a modern lock and dam infrastructure is essential to U.S. competitiveness, to energy efficiency, to congestion relief, to environmental protection, and to sustain jobs.”

Leadership Award for Senator Grassley

In recognition of his long-standing support for America’s ports and waterways, Senator Chuck Grassley (R-IA) will receive the Ninth Annual Waterways Council Leadership Service Award on February 24, 2010, at the W Hotel in Washington, DC. The award will be presented at a dinner that will conclude three days of activities sponsored by WCI for advocates of America’s shallow-draft commercial navigation. The fifth annual Waterways Seminar will be held Tuesday, Feb. 23, to explore policy issues impacting waterways infrastructure. Confirmed speakers include Assistant Secretary of the Army (Civil Works) Jo Ellen Darcy. Registration also includes an opening reception on Monday evening, Feb. 22. Visit www.waterwayscouncil.org for more on both events, plus details on sponsorship opportunities and discounted hotel arrangements. IP 22

www.inlandportmagazine.com

January/February 2010


LGH Debuts 700-ton Modular Spreader Beam

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ifting Gear Hire Corporation (LGH) has added a 700-ton modular system into its rental inventory. This system gives LGH customers the ability to lift as much as 700 tons up to 75 feet and to reach out to 443 tons at 100 feet unsupported. This means that long lifts, such as those typically found on bridge jobs and various trusses, can now be done with single cranes instead of multiple cranes. “And with it being modular, it gives us the extra advantage of being able to ship anywhere on standard flatbeds,” adds David McKenzie, LGH Houston Customer Service Manager, “that means no permits, no escorts, and no worries.” LGH has also unveiled plans to open its 12th facility in Lakeland, Florida on March 1st, 2010. The new warehouse will enable LGH to better serve its growing customer base in the Southeastern U.S. The 20,000 square-foot building houses a variety of equipment; including air chain hoists in capacities up to 25 tons, modular spreader beams in capacities up to 170 tons, and thousands of other rigging and hoisting products. “This new facility will increase the availability of equipment for our customer’s rental needs. It will also offer equipment not yet seen in the Florida market” said Brad Weiss, Regional Sales Manager. As a means of added safety and certification, the new facility also has the capability to test hoists with a capacity up to 25 tons. “We take great pride in being considered one of the best in the Rental Industry,” Weiss continued, “Our goal is to make sure not only Florida, but the surrounding regions receive the best possible service.” As a result, this location will also reduce delivery time and transportation costs, and improve customer service, throughout the region. For more, visit www.lgh-usa.com. IP January/February 2010

Dredging Contractors of America The national non-profit trade association for the dredging industry, the Dredging Contractors of America provides a full range of association services to member companies and represents the industry on key issues before the US Congress. DCA is an active partner with the US Army Corps of Engineers, public port authorities, state and local governments, and construction and maritime organizations.

Our Mission is to improve the quality and responsiveness of dredging service delivery to the Nation, ensuring that America’s ports, waterways, wetlands and beaches are efficiently constructed and maintained in an environmentally sustainable manner using innovative methods and American ingenuity.

www.dredgingcontractors.org www.inlandportmagazine.com

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Inland Port at the Workboat Show

The 2009 International WorkBoat Show was a great success. Here are some shots the Inland Port Magazine crew snapped during our many trips up and down the aisles. We look forward to seeing you all again at this year’s show, December 1-3, 2010.

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Inland Port Magazine’s Jo Anne Hudson gets the scoop on Spin-Clean from Fluid Power Energy’s Eric Brewer.

January/February 2010


IRPT celebrated another successful Workboat Show by treating its members to a special breakfast at Mother’s Next Door featuring US Coast Guard (USCG) 8th District Commander, RADM Mary Landry, and USCG Commandant, Admiral Thad W. Allen. Landry and Allen are shown here with IRPT Executive Director Deirdre McGowan and IRPT President Jerry Sailors.

IRPT Hosts Star-Studded Membership Breakfast RADM Landry addressed water column issues and the R&D center at Vicksburg, among other topics.

Admiral Allen takes questions from the IRPT audience.

January/February 2010

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PLACETHEMARKETPLACETHEMARKETPLACETHEMARKETPLACETHEMARKETPLACETHEMARKETPLACETHEMARKETPLACETHEMARKETPLACETHEMARKETPLA

Automatic Identification Systems Need to know who passed your port in the dead of night? These companies can help.

Screen Shot of MIS’s WebVTS.

Maritime information systems, inc. Maritime Information Systems (MIS) has been developing its network of Automatic Identification System (AIS) shore-based tracking stations since 2006. Over 250 of their stations are operational around the world. In order to develop this network, the company has worked with private and public organizations willing to host our equipment in exchange for a free subscription to view vessel traffic captured via our network. MIS is hoping that many of the inland river marine commercial organizations with facilities along the waterways will consider hosting their equipment in exchange for a web subscription to view the information. The main benefit to these organizations is the ability to monitor vessels equipped with AIS transponders, used by ships and vessel traffic systems (VTS) principally for identification of vessels at sea. AIS helps to resolve the difficulty of identifying ships when not in sight (e.g., at night, in fog, in radar blind arcs or shadows, or at distance) by providing a means for ships to exchange ID, position, course, speed and other ship data with all other nearby ships and VTS stations. It works by integrating a standardized VHF transceiver system with a GPS receiver and other navigational equipment on board ship (Gyro compass, Rate of turn indicator, etc.). Many, but not all, commercial vessels carry AIS transponders. However, it is expected that the USCG will make the carriage of AIS transponders mandatory for commercial vessels over 65 feet with greater than 500HP. Once it is required, end-users of the WebVTS system will be able to track any vessel within range of our network of AIS stations. The hosting organization could use this infor26

mation for security, logistics, manpower planning, commercial analysis and historical reporting. MIS would benefit from being able to offer subscriptions to users interested in viewing vessel information for the area. Organizations who are willing to help MIS develop the coverage by hosting theirr equipment will get a free subscription, while all others could subscribe at the cost of $50 per month, per user. In addition to their web/pc based display, MIS is also offering an iPhone application to track vessels. More specifically, MIS’s WebVTS system allows you to know who went by your port during the night and weekends, as well as monitor how long towboats might have stayed within a specific area, a one-mile zone for example. Within that one mile zone ports can monitor traffic that pass by. In the event something should happen, such as a dock or mooring cell strike, your port can now have some ability to at least see who was passing by. The system allows for third-party independent validation of towboats in the area and indirectly gives end-users supporting information as to when a barge arrived in the area should there be any disputes concerning demurrage. As this system gets fully functional with extended coverage, it will allow users to see traffic from much farther distances. The system allows one to tag specific towboats which could be handling barge cargo coming to the area. As PortVision’s that towboat moves towards PV-OnBoard the user’s location, the system device is easily mounted to has alarms that generate a vessel, and emails or text messages to monitored on cell phones prompting that our a laptop or cargo is getting close. This Blackberry. could be very useful in planwww.inlandportmagazine.com

ning barge unloading. Currently some organizations do not have the ability to monitor if a tow has arrived during the weekend. MIS currently has Web VTS stations up and running in Bedford, KY; Cincinnati, OH; Henderson, KY; Paducah, KY; Parkersburg, WV; and Pittsburgh, PA. Many more inland locations are pending. In the future, MIS plans to integrate the towboat transponder data with barge tracking data and information allowing end users to filter data and see where a specific barge is, as well. Portvision PortVision provides a suite of satellite tracking products and web-based software for delivering a wide variety of benefits to inland river users. Born out of the energy industry, PortVision is now used by most major oil companies to provide visibility to AIS-enabled vessels (i.e. vessels over 65 feet and most commercial workboats) in major ports and rivers around the Gulf of Mexico. Since PortVision’s launch in 2006, the company now processes over 40 million vessel location reports every day and manages a data warehouse comprising over 10 billion records of vessel arrivals, departures, passings, and other movements. The data is used by a number of different industry users, from fleet owners, to service providers, to government and legal users. PortVision data is regularly used for operations, market intelligence, and to address commercial and legal disputes by providing historical reporting and analysis of vessel activities along the waterway. PortVision’s on-staff analysts regularly provide expert analysis (including court testimony) that incorporate the Company’s data and tools. PortVision also provides satellite-based tracking for a variety of inland river assets, including workboats and unmanned barges. The company’s PV-OnBoard line of trackers provides low-cost, high-availability tracking for the inland river market. PortVision recently introduced a plug-and-play, battery-operated barge tracking unit that provides barge tracking via satellite for under $300 per unit. IP January/February 2010


Latitude Marine Delivers Barge to Office of Naval Research

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atitude Marine Services recently delivered a new all-aluminum barge for the Office of Naval Research (ONR). The 160’ x 35’ barge is a component of the experimental landing craft known as the E-Craft. Latitude Marine had previously delivered two 14’ x 60’ aluminum passenger compartments for the same project. The barge and the passenger compartments are classed ABS and are US Coast Guard-inspected. This order represents the largest and most ambitious contract for Latitude Marine to date and has enabled the yard to add improvements to make it the most efficient production facility of its type on the West Coast. Improvements include a 120’ x 80’ building with two gantry cranes, automated panel assembly machinery, and the newest state-of-the-art welding equipment available. An additional 35 jobs were added by Latitude Marine as a result of this contract. Based in La Conner, Washington, Latitude Marine Services was founded in 2001 by a family with years of shipbuilding experience. The company’s past projects include a 35’ aluminum water taxi, and a 70’, 80-ton steel transporter ferry called the M/V Henry Island. It has twin engines, an aluminum pilot house, and is operated by San Juan Ferry & Barge in the San Juan Islands of NW Washington state. IP

The M/V Henry Island, was built by Latitude Marine for San Juan Ferry & Barge.

January/February 2010

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GUEST COLUMN

Supreme Court Rejects Bid to Close Illinois Locks to Waterborne Commerce Due to Asian Carp

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By Jennifer A. Carpenter Sr. Vice President-National Advocacy, American Waterways Operators

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nland ports on the Great Lakes and the barge industry that serves them have been embroiled in a debate that has been taken all the way to the Supreme Court over the best way to prevent Asian carp from gaining access to Lake Michigan through locks on the Illinois Waterway System. For over six years, the American Waterways Operators (AWO) has cooperated with the U.S. Army Corps of Engineers, U.S. Environmental Protection Agency, U.S. Coast Guard and other officials to ensure a balance between preventing the spread of the invasive Asian carp with underwater electric fish barriers while ensuring the safe and efficient operation of this major transportation route. On January 19, the Supreme Court rejected a petition brought by the State of Michigan and other Great Lakes states against the State of Illinois that sought a preliminary injunction to close the locks to prevent Asian carp from entering Lake Michigan. U.S. Solicitor General Elena Kagan had argued that closing the locks was not justified by available science and would not provide a solution to the Asian carp issue, since there are other outlets through which the fish can gain access to the Great Lakes. There is also debate about whether Asian carp can actually thrive in the Great Lakes habitat. Experts including the U.S. Geological Survey have noted that Asian carp have already been in the Great Lakes for more than 15 years and have not posed a significant problem. While the scientific benefit of closing the locks is speculative at best, it is certain that shutting down this important navigation infrastructure would have serious negative impacts. The fact is that there is no alternative commercial navigation route by which the cargo that currently passes through the Illinois Waterway System could be shipped. In particular, there is no waterway alternative to using the Chicago and O’Brien locks to reach customers above the locks. Alternate modes of transportation, such as highway and railway transport, cannot make up for the halt in commercial navigation that closing the locks would cause. First, there would not be sufficient availability of trains and trucks to accommodate the amount of freight that travels through the Illinois Waterway System. A typical inland barge has a dry-cargo capacity at least 16 times greater than a single rail car, and 70 times greater than a single semi trailer truck. A single barge can carry an amount of liquid cargo that would fill 144 semi trucks or 46 rail cars. The addition of 1.3 million more trucks on the Midwest’s roads would further endanger public safety. Second, many plants, factories, and other businesses receive cargo exclusively or primarily through waterways commercial navigation. These businesses include power www.inlandportmagazine.com

plants, petroleum plants, steel producers, and shippers of agricultural products. They do not have the physical infrastructure necessary to receive or distribute large quantities of goods by rail or by truck and therefore would be left indefinitely without fuel and raw materials and without a means of accessing the market with their products. Third, transferring cargo from barges to trucks or rail cars before they enter the Chicago Waterway System would require a massive facility for the unloading and reloading of the cargo. Such a facility does not exist and cannot be constructed in the short term. AWO submitted an affidavit on January 6, 2010, as part of Illinois’ response to the Michigan suit. The affidavit set out the case for the devastating impact that closing the locks would have on the barge industry and the Midwest economy, environment, jobs, public safety and quality of life by preventing millions of tons of commodities from being shipped by barge to and from Great Lakes ports. Any lock closure would cost hundreds if not thousands of jobs and would force cargo onto trucks and railroads, driving up costs. Regional air quality would also be harmed, since barging is more fuel efficient than truck and rail, averaging 576 ton-miles per gallon, compared to 413 for rail cars and 155 for trucks. Substituting rail or truck transportation for commercial navigation would create unimaginable traffic congestion on the region’s already congested roads and rails given the enormous disparity in the capacity of barges compared to trucks and rail cars. Such increased road usage in the already-congested Midwest-Great Lakes region could cripple traffic in the region and greatly reduce the surface life of the affected roadways. AWO is gratified that the U.S. Supreme Court has taken action to prevent disastrous consequences to Midwest consumers and to the hard-working Americans employed in the towing industry and in the industries and companies that rely on the essential commodities shipped to inland ports by barge. These economic building blocks include coal for utilities, industrial steel, iron ore, petroleum, home heating oil, road salt, deicing liquid for airliners, and gasoline. The next step is for the Court to decide whether or not to hear Michigan’s request to reopen the original 100 year old ongoing case allowing the continued operation of the Chicago Sanitary and Ship Canal, which will not happen until late February at the earliest. The barge industry will continue to work with all stakeholders on ways to keep Asian carp from gaining a foothold in the Great Lakes while preserving economical barge transportation to Great Lakes ports and ensuring the free flow of commerce essential to the Midwest and the rest of America. IP January/February 2010


Luxury Cruise Liner Calls on Port of New Orleans

(L-R) Captain Andreas Greulich exchanges plaques with Tommy Westfeldt, Chairman of the Board of Commissioners of the Port of New Orleans, and Gary LaGrange, President and CEO of the Port of New Orleans, to commemorate the Deutschland’s recent port call in New Orleans.

January/February 2010

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he German-flagged luxury cruise liner Deutschland recently spent four days at the Port of New Orleans’ Julia Street Cruise Ship Terminal, marking the vessel’s second visit to the Crescent City in as many months. The 575-foot vessel is owned by German-based Peter Deilmann Cruises, which offers global year-round cruises. The 600-passenger vessel’s port call was unique in that the ship stayed for a few days, offering a portof-call for existing passengers, a turnover day, and another port-of-call for new passengers. Port officials have several other unique cruise ship calls scheduled for 2010, in addition to the home-ported Carnival Triumph and Norwegian Spirit. “Port calls by cruise ships are an important segment of the cruise industry at the Port and for the tourism industry in the metro area,” said Gary LaGrange, President and CEO of the Port of New Orleans. “These passengers are able to spend time touring south Louisiana and experiencing all the cultural, historic and culinary destinations we have to offer.” The Deutschland, which sailed its maiden voyage in 1998, was built to resemble a traditional grand hotel, harkening back to an earlier era. Upon its departure from New Orleans, the vessel visited Caribbean and Central American ports of call. The cruise industry is vital to Louisiana’s economy, supporting 3,617 jobs and $108.8 million in wages. Industry spending totals about $149 million annually, resulting in $23.7 million in state and local taxes, Cruise passengers account for more than 180,000 room nights in area hotels. IP www.inlandportmagazine.com

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Industry Notebook About 450,000 gallons of crude oil spilled when two vessels recently collided at the Port of Port Arthur, Texas. According to the US Coast Guard, no injuries were reported, but part of the port was closed. A 600-foot tanker carrying oil collided with a towing vessel pushing a loaded barge, resulting in a 15-by-8-foot hole in the tanker. The towing vessel then ricocheted and hit another nearby tanker tied to a pier. The Port of New Orleans and the American Institute for International Steel (AIIS) will be hosting the 2nd Annual Critical Commodities Conference April 20-22, 2010 in the Crescent City. The event is designed to appeal to all carriers and shippers of waterborne commerce. Organizers expect more than 600 participants, which would include a wide variety of port authorities and North American, European, Latin American and Asian shipping executives, along with at least 60 exhibitors. An impressive speaker and moderator platform is in place featuring Mike Haverty of KCS, Dr. David Welch of Stone Energy, Niels M. Johnsen of ISC, Peter Marcus of Steel Dynamics, Merritt Lane of Canal Barge, Cornel Martin of the Waterways Council, and Gary LaGrange of the Port of New Orleans. The keynote speaker will be Leo Gerard of the United Steel Workers. The Critical Commodities Conference will take place just prior to the first weekend

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of one of the city’s most popular music festivals, the Jazz and Heritage Festival, and the same week of the Zurich Classic Golf Tournament. Southern Sails of Louisiana is in charge of the conference, which will be held at the Hilton New Orleans Riverside Hotel. For more information contact Jimmy Baldwin at (504) 588-2981 or j.baldwin@ sailsla.com. L-3 Communications announced that its Klein Associates division (L-3 Klein) has appointed Bill Charbonneau as Regional Sales Manager for their Side Scan Sonar Systems. Working with other members of the L-3 Klein team, Charbonneau will be responsible for implementing Klein’s strategy to multiply its sales of domestic and international Multi-Beam Side Scan and Bathymetric Sonar Systems. Dufour, Laskay & Strouse (DLS) announced that surveyors Nick Paternostro and Arnold N. Lachmann have passed

Paternostro and Lachmann of DLS.

Email your company or organization news to djones@inlandportmagazine.com their technical proficiency exams to become a National Association of Marine Surveyors (NAMS) Certified Marine Surveyors. DLS now has eight NAMS-certified surveyors— the largest concentration in the country. Sonardyne International received an order from Port Freeport in Texas, and its construction partner, Cardinal Mechanical, for a Sentinel Intruder Detection Sonar and a deployment system for a fixed, permanent installation within the port. The Sentinel Intruder Detection Sonar (IDS) system is able to protect vessels, ports and waterside installations from intrusion by divers, swimmers or surface vehicles, The system uses innovative sonar technology and intelligent software to automatically detect, track and classify an underwater threat at long ranges. The Sentinel system will be integrated into the Port’s new command and control system that fully integrates data from the sonar, cameras and radars to protect shipping and port infrastructure against maritime threats. The Freeport installation will use a unique trolley deployment system that will be fixed onto a sloping bank. This innovative mechanical design allows the alignment of the sonar head and its easy recovery for maintenance. Eric Levitt, Sonardyne’s business development manager for the Americas said, “The port required a technical solu-

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tion that would allow the Sentinel to be permanently deployed but flexible enough to enable simple recovery for cleaning and maintenance, while at the same time remaining cost effective and without the burden of significant overhead costs. Our team has consequently worked very closely with the customer, its engineering consultants, Aperio Engineering and Cardinal Mechanical L.P. This contract represents strong confidence in both the system and in Sonardyne’s ability to deliver innovative solutions coupled with class leading support and it establishes a model for similar installations elsewhere.” Rick Benavidez, director of security and safety at Port Freeport, said, “The Sonardyne team was extremely professional throughout the entire process. They brought equipment to the Port to physically demonstrate the system’s capability. Additionally, they displayed a very professional approach to both understanding our contracting requirements and during the design of the deployment system. The Sonardyne solution offered the best return on the investment.” Port Freeport was founded more than 100 years ago, and has become one of the fastest growing ports on the Gulf Coast. It is strategically positioned on the US intercoastal system and, in terms of foreign tonnage handled, is currently ranked as the 16th largest port in the United States.

January/February 2010


Sentinel has already undergone extensive trials with US military programmes and with this contract Port Freeport leads the way for other strategic US ports. It is the first true diver detection sonar system of this type installed and operational in a commercial port and expands the user base and application of Sentinel systems in permanent deployment scenarios. The Sentinel system is approved within the USA for purchase from the GSA program, schedule No. GS07F-0531. Sentinel is now acknowledged as a truly original category of underwater threat detection, tracking and classification sonar. Using innovative composite arrays, electronic design and software algorithms, the unit is not only physically smaller than previous generation systems, it operates at considerably lower source levels than more generic hybrids and this removes the potential threat to cetaceans and other marine life. Sentinel was originally demonstrated in October 2007 and delivered to its first customer in May 2008. Sentinel systems are now in operation on every continent where they are able to protect both commercial and military assets, critical energy and civilian infrastructure, VIPs and maritime borders. Pennsylvania Governor Rendell announced $24.5 million in rail investments across 31 counties in Pennsylvania, which includes $3.5 million for waterway-related businesses in the Port of Pittsburgh, through PennDOT’s Rail Freight Capital Budget/Transportation Assistance and Rail Freight Assistance Programs. The Port of Pittsburgh Commission praised the Governor and PennDOT for their rail-related investments into the maritime facilities in the Port District. “This effort demonstrates the commitment by the Commonwealth to the intermodal connections between railroads and the waterways and their importance to the region’s economic sustainability,” said James McCarville, Executive Director of the Port of Pittsburgh Commission upon learning of the specific investment breakdowns. Port-related projects included among the grant recipients are: • Colona Transfer, LP -- $700,000 to rehabilitate track and for construction to support increased unit train coal shipments. • Horsehead Corporation -- $136,174 to rehabilitate tracks and a grade crossing within the plant facility. • Leetsdale Industrial -- $624,834 to rehabilitate track and for new construction at various locations throughout the industrial park. • Mol-Dok, Inc. -- $295,400 to rehabilitate track and turnouts, and to rebuild several grade crossings at the former Bethlehem Steel Mill Site.

January/February 2010

• Pittsburgh, Allegheny, & McKees Rocks RR Co. -- $283,150 to rehabilitate existing track and construct new track at the McKees Rocks yard. • Three Rivers Marine and Rail Terminal, LP -$195,996 to replace bridge ties and rehabilitate track. • USS Real Estate Div. of USSC -- $1.3 million for phase two of track improvements for Mon Valley Works, including switch replacement and associated track work. In other news, the Pennsylvania Economic Development Association (PEDA) presented the Port of Pittsburgh Commission with the PEDA Economic Development Project of the Year Award for its successful effort in launching Bridgeside Point II at 450 Second Avenue in the Pittsburgh Technology Center located on a redeveloped brownfield site. The five-story, 160,000-square-foot laboratory and office complex, owned by the Port of Pittsburgh Commission, is home to the University of Pittsburgh School of Medicine’s Department of Orthopedic Surgery, the McGowan Institute for Regenerative Medicine and the Department of Microbiology and Molecular Genetics and others. And the Pittsburgh Engineer District has awarded a $28.4 million contract to continue critical work on the Monongahela River Locks and Dam 4 at Charleroi, PA. The first batch of Recovery Act Funds for Charleroi added $17.4 million to finish the ongoing river wall contract, which is now approximately 87 percent complete.

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Illinois’ Tri-City Regional Port District announced that the following businesses completed construction during 2009: Airgas Specialty Products; Abengoa Bioenergy of Illinois; US Army Reserve; ARCH Medical Helicopters; and Arizon Air Structures. And the cold weather hasn’t stymied activity at the Port District this winter. Specific projects underway include: Red Dock Grain Facility - Out for bid. The project will replace an elevator leg and drag conveyor in the rail and truck grain receiving facility located along Illinois Route 3 south of Rock Road. Warehouse Roof Project – The installation of new roofs on Warehouse 5, Sections C & D is underway. Warehouse Dock Levelers – Dock levelers are being installed at several warehouse sections. These allow trucks to back up further to the warehouse docks allowing better roadway access around them. Corps of Engineers Work – The remediation will consist of installing new relief wells and piping the wells together to assist in relieving pressure on the system Rail maintenance – Improvements to the rail system continue as contractors finish up Grade Crossing Protection at Bissell Street. IP

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The Last Word

James R. McCarville

Executive Director, Port of Pittsburgh Commission When did you first become acquainted with this industry? Serendipity is the answer. When I first returned from the Peace Corps I worked as an intern in the Mayor’s Office in Milwaukee. My father had told me, that, “before you make a report, know more about your subject than anyone else in the room.” Well, that’s tough when everyone else in the room has been on staff for 16 years. Lacking seniority, when it came to assignments, I got last pick. I didn’t realize, at the time, what a gift last pick would become when it happened to be reviewing the Harbor Commission’s budget. No one else was interested. Later, when a potentially criminal complaint was made against the port, I was asked to investigate. I thoroughly exonerated the port leadership of wrongdoing, but not before I became curious about the business. Still later, when the Harbor Commission wanted to build a container facility, I recommended against it for what I thought were good business reasons (container traffic on the Great Lakes remains difficult to develop to this day). When the Mayor, to my surprise, backed me, the entire Board of Harbor Commissioners resigned. Thus, I became the key port advisor, by default, if nothing else. Eventually I learned, somewhat to my chagrin, that he really wanted to dedicate that particular site as his “Mayor’s SummerFest Park,” which it remains today. Only when I realized how interesting this world mixing business, politics and government could be, and how close we all came to making bad decisions for the wrong reasons, did I realize how interesting of a career this could become. What was your favorite project or assignment you’ve been involved in, and why? The most interesting project was preparing the strategic transition plan to transfer the Panama Canal. I was one of two consultants living in Panama for four months. We prepared the framework for the Canal to go from US business, labor, financial, accounting and environmental laws, rules and regulations, to Panamanian laws, rules and regulations for the same. That happened shortly after the US invasion had removed General Noriega from power and both Americans and Panamanians viewed each other through conflicting prisms of history. Yet, there was nothing that could not be solved once people began to talk, which was our job to bring about. Today commerce functions well, the Canal is planning an expansion and the US brought home over 10,000 troops that had previously been stationed there for nearly a century. The most enjoyable project was my tenure in the leadership of Inland Rivers, Ports and Terminals (IRPT). I have never found so much goodwill among competitors as I have in our inland river industry. What was your least favorite? It is disappointing, that, try as we might, we have not yet been able to develop dynamic container-

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A Revealing Look at our Industry Leaders

on-barge traffic on the rivers. The bad news is we probably won’t succeed as long as we continue to isolate waterway transportation from other transportation. Unlike Europeans, our national policies fail to calculate the negative social cost (highway congestion and air pollution) that not using the waterways can cause. Shippers need to be credited for using more environmentally-friendly modes of transportation. What accomplishments, both professional and personal, are you most proud of? Nothing compares to my three children and two grandchildren, and the fact that my wife, Haydee, continues to tolerate me. My other child, SmartRivers, grew out of a TRB meeting with Reinhard Pfliegl from Austria. I quickly saw how Europeans viewed waterways as a solution rather than a problem. I saw how they were exploring new technologies that we were not even discussing. Soon we started holding benchmarking conferences. The first was in Pittsburgh, the most recent in Vienna, which brought together over 300 business, government and academic leaders focusing on bringing our industry into the second decade of the 21st century. If you could go back and tell your teenage self one thing, what would it be? Take a picture of your teenage self. Look at it 20 years later. You will find that you were neither as ugly as you thought, nor as stupid. By the way, the same strategy works if you take the picture when you are 40 or 60. You’ll still look good when you check back 20 years later. Without naming names to protect the innocent (or guilty), what is the single most unbelievable thing you have seen happen on a project or in your career? That a kid who was not that good at playing second base could grow up to play on so many winning teams. Despite a lot of publicity to the contrary, we still have a great sense of teamwork in our country, it never ceases to amaze me how well that works. What do you want to be when you grow up? I would like to be the wise old man who sits on the mountaintop, the one that everyone comes to seeking advice. Failing that, maybe a consultant or, better yet, a Lieutenant Governor, any state. If you could make those in power at the local, state, and federal levels understand one thing, what would it be? We are living off of the infrastructure that our parents, grandparents and great-grandparents built. We are not doing a very good job of taking care of it and that has consequences. If you could make the general public understand one thing, what would it be? See above. www.inlandportmagazine.com

What is your favorite? Sport: Playing the Wii. I love to golf and ski, but every couch potato needs a Wii. Book: James Hilton’s Lost Horizons, the ShangriLa story that I read as a kid. Movie: Groundhog Day. What a great lesson: you can actually learn from your own mistakes. TV Show: HBO’s In Treatment. We all can use a little therapy. Miscellany: All of the interesting podcasts available. I am trying to learn Gaelic and study Cognitive Learning. It’s mostly free and there is no homework. What is the most significant piece of equipment you have seen come along during your career? The fax machine. Without it, we could have never got the Port of Pittsburgh Commission off the ground. In 1994 there was considerable mistrust that the newly created Port Commission would really be able to treat all of the privately-owned public terminals equitably, especially in distributing new business leads. Sequential telephone calls would take too long and mail would be too slow. The fax allowed for simultaneous distribution and transparency. It created a trust that continues today. Today, of course, we use email. What piece of equipment has not been invented yet, but will revolutionize the industry when it is? We are close to something big. We at the Port of Pittsburgh Commission have been working with local industry, the Corps, and Carnegie Mellon University to design what we think will become the backbone for a Wireless Broadband Internet on the waterways, starting with locks and dams throughout the system. If successful, it would be cheaper than satellite phones and have more capability than cell phones. As software is developed, it would enable towing company headquarters to communicate with their boats and with government agencies. It would improve data collection lock monitoring for the Corps; engine maintenance for vessels underway; and safety and maritime domain awareness, as it would be able to also link-up port security cameras. If you could change one thing about yourself, what would it be? I’d spend an hour a day in some physical work, preferably on the docks. Give us your thoughts on the inland port and waterway industry, where it’s been, and where it’s going. We do a great job at what we do, but we can’t stand still. We have to adopt technologies faster than we may want to. We need to champion national priorities to give credit for using the environmental advantages of waterways. We need to upgrade our own systems to become even greener for the future. Then, we need to convince the rest of the nation that we are important to them and that we care about making their lives better. In short, we have to face all of the challenges that every other industry in our nation faces, but we better do it sooner as opposed to later. IP January/February 2010



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